What Activities are Prohibited by the Illinois Consumer Fraud and Deceptive
Business Practices Act?

Sue Cornelius: A Consumer Fraud Claim

Sue runs a very successful online retail business selling hand-crafted
soaps, candles, and other items. She filed a Chapter 13 bankruptcy to
strip the second mortgage from her home and to cram down the loan on her
3 year old car. Shortly after she filed her case, Sue received a letter
from a debt collection agency hired by her auto loan lender. The letter
informed her that due to her bankruptcy filing, she was in breach of her
loan agreement and the car would be repossessed unless she paid the loan
balance in full within 30 days.

This behavior clearly violates the automatic stay, which went into effect
when Sue filed her bankruptcy case. It also violates the Fair Debt Collection
Practices Act. The debt collector is impermissibly contacting her, is
making false representations, and is engaged in an unfair practice (violating
the automatic stay). This behavior also violates ICFA because the debt
collector is misrepresenting a material fact (that she is in breach of
her loan agreement) in the hopes that she will rely on the statement and
pay the money. Sue contacts her attorney, and ultimately files an adversary
proceeding in the Bankruptcy Court based on the debt collector's conduct.
Sue can attempt to recover damages for each statutory violation.

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